Folk2Folk loanbook hits £300m

FOLK2FOLK has hit the £300m lending milestone.

The rural peer-to-peer business lender said its loanbook has enabled small businesses across a variety of sectors, including agriculture, alternative energy, leisure and tourism, hospitality and property development to grow, diversify or refinance.

The minimum investment amount on Folk2Folk’s platform is £20,000 and lenders typically receive 6.5 per cent annual interest paid monthly.

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“Reaching the £300m milestone highlights the important role Folk2Folk plays in providing a lifeline to many local and rural businesses as well as providing an additional source of monthly income for our lenders’ savings pots,” Roy Warren interim managing director of Folk2Folk, said.

“Helping local businesses have access to much needed capital to secure their growth, development and diversification is at the heart of what we do.

“The local lending movement can transform local and rural communities by enabling the creation of jobs and revenue opportunities.”

It comes after the lender boosted its investor rates and scrapped its Innovative Finance ISA arrangement fee as part of an overhaul of its product range.

Investors can now earn from 4.5 per cent to nine per cent per year, depending on the loan and the term.

Previously, the platform offered rates ranging from 5.5 per cent to 6.5 per cent.